The 200-week average halts the decline
Vale gains 1.9% after a new 30-week low fails to hold at the weekly close
Our view last week
Sellers owned the weekly bar outright, with buying below 25% of volume: Vale sheds 3.5% and, a week after the buy trade's stop gave way, a fresh sell signal kicks in. Vale stock stays below its 50-week average with the MACD deteriorating, yet the price is hugging its 3-month lows with the 200-week average just underneath: our technical analysis rates opening a short here as a high-risk swing trading setup.
This week's summary
Vale carved out a new 30-week low this week, in the 68.7 area, yet the weekly close did not confirm it: the 200-week average, in the 69 area, turned the slide back and the week ended up 1.9% after 3 straight declines. On our weekly technical analysis Vale stock still sits below its 50-week average, with the MACD under its Signal line for 30 weeks. The Sell signal kicked in 7 days ago: since then the decline has lost its push, and the price action argues for waiting.
Sell signal in observation
·2nd week from start
·Rest of the World stocks
·T2
·📅 Earnings · Oct 22
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IQS Phase
62
ordinary
Signal Strength
14
decline losing steam
Sizing
MINIMUM
Ranking
#5 / 9
Rest of the World stocks sell signals
Trade P&L %
-1.88%
from signal to date, no stop loss
Vale (VALE3) weekly chart — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
Rank position
ranks 5th among the 9 sell signals for titoli resto del mondo in our ranking, with a signal strength of 14 out of 100.
Sector context
SectorMaterials
Benchmark ETFXLB
Sector regimeweak phase
Performanceweekly -1.89% · monthly -7.72%
VALE3 belongs to the materials sector (reference ETF XLB). The sector is classified weak phase according to our weekly reading.
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